Juan and Pedro formed a partnership on June 1, 2022. They agreed to split their profits on a 3:7 ratio. Each partner invested the following asset: Juan Cash – P 30,000 Office furniture – P 180,000 Pedro Inventory – P 90,000 Office equipment – P 160,000 The office equipment was purchased in installments, and P 50,000 is still unpaid which the partners agree that the partnership would assume. To have a fair profit sharing the partners agreed that they would invest capital equal to their profit ratio. How much more should Pedro invest?
Juan and Pedro formed a partnership on June 1, 2022. They agreed to split their profits on a 3:7 ratio. Each partner invested the following asset: Juan Cash – P 30,000 Office furniture – P 180,000 Pedro Inventory – P 90,000 Office equipment – P 160,000 The office equipment was purchased in installments, and P 50,000 is still unpaid which the partners agree that the partnership would assume. To have a fair profit sharing the partners agreed that they would invest capital equal to their profit ratio. How much more should Pedro invest?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Juan and Pedro formed a partnership on June 1, 2022. They agreed to split their profits on a 3:7 ratio. Each partner invested the following asset:
Juan
Cash – P 30,000
Office furniture – P 180,000
Pedro
Inventory – P 90,000
Office equipment – P 160,000
The office equipment was purchased in installments, and P 50,000 is still unpaid which the partners agree that the partnership would assume. To have a fair profit sharing the partners agreed that they would invest capital equal to their profit ratio. How much more should Pedro invest?
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